Atacama Minerals Corp. said it will buy privately-held Sirocco Gold Inc. in an all-stock deal and bring in a new team headed by Chief Executive Richard Clark, sending its shares soaring 64 percent to a six-month high.
Canada-based Atacama said it will pay West Africa-focused Sirocco about 20 million of its shares, worth C$11 million ($10.9 million) as per its Friday closing price.
Atacama said Clark will replace Tim Miller while Alessandro Bitelli will replace Wanda Lee when he resigns as chief financial officer on Nov. 30.
Atacama's acquisition of Sirocco is conditional on it raising about C$5 million through a private placement to Clark, Bitelli and certain other shareholders in Sirocco.
Atacama's shares surged to 90 Canadian cents in early trade on Monday morning on the Toronto Venture Exchange. The stock was the highest percentage gainer on the exchange, rising 64 percent in the first 30 minutes of trade.